Effective date noteNOTE: This section is created eff. 1-1-25 by 2023 Wis. Act 73. 125.175 HistoryHistory: 2023 a. 73. 125.18125.18 Issuance of managers’ licenses. 125.18(1)(1) Authorization. A municipal governing body may provide by ordinance for the issuance of managers’ licenses. Managers’ licenses may not be required other than for the purpose of complying with ss. 125.32 (1) and 125.68 (1). Managers’ licenses may be issued only upon written application. 125.18(2)(2) Validity. Managers’ licenses are valid only within the issuing municipality. 125.18(3)(3) Fee. The municipal governing body may establish by ordinance a fee for the manager’s license, but the fee may not exceed $25 per year. The license shall be valid for no more than one year and shall expire on June 30. 125.18 HistoryHistory: 1981 c. 79, 391. 125.185125.185 Provisional retail licenses. 125.185(1)(1) A municipal governing body that issues licenses authorizing the retail sale of fermented malt beverages, intoxicating liquor or wine shall issue provisional retail licenses. The municipal governing body may by ordinance establish standards under which provisional retail licenses shall be issued and shall by ordinance designate the municipal official having authority to issue provisional retail licenses. 125.185(2)(2) A provisional retail license may be issued only to a person who has applied for a Class “A”, Class “B”, “Class A”, “Class B” or “Class C” license and authorizes only the activities that the type of retail license applied for authorizes. 125.185(3)(3) The municipal governing body shall by ordinance establish the fee for a provisional retail license. The fee may not exceed $15. 125.185(4)(4) A provisional retail license expires 60 days after its issuance or when the Class “A”, Class “B”, “Class A”, “Class B” or “Class C” license is issued to the holder, whichever is sooner. The official who issued the provisional retail license may revoke the license if he or she discovers that the holder of the license made a false statement on the application. 125.185(5)(5) Notwithstanding sub. (1), a municipal official may not issue a provisional “Class B” license if the municipality’s quota under s. 125.51 (4) prohibits the municipality from issuing a “Class B” license. 125.185(6)(6) No person may hold more than one provisional retail license for each type of license applied for by the holder per year. 125.185 HistoryHistory: 1995 a. 23. 125.19125.19 Alcohol beverage warehouse permit. 125.19(1)(1) Issuance. The division shall issue an alcohol beverage warehouse permit which authorizes the permittee to store and warehouse alcohol beverages in warehouse premises covered by the permit, subject to rules adopted by the division. The permit does not authorize the sale of any alcohol beverages. 125.19(2)(2) Eligibility. Alcohol beverage warehouse permits may be issued only to a person who holds a valid certificate issued under s. 73.03 (50) and is qualified under s. 125.04 (5), except a person acting as an agent for or in the employ of another. Notwithstanding s. 125.04 (5) (a) 5., a person is not required to complete a responsible beverage server training course to be eligible for a permit under this section. 125.20125.20 Interest restrictions. 125.20(1)(b)(b) “Distribution permittee” means a person holding a distribution permit and includes a restricted individual of such a person. 125.20(1)(c)(c) “Production permit” means a permit issued under s. 125.29, 125.295, 125.52, or 125.53, a permit issued under s. 125.30 to a brewer in another state, or a permit issued under s. 125.58 to a manufacturer, rectifier, or winery in another state. 125.20(1)(d)(d) “Production permittee” means a person holding a production permit and includes a restricted individual of such a person. 125.20(1)(e)(e) “Restricted individual” means any of the following: 125.20(1)(e)1.1. An individual identified on a manager’s license or who works or acts in a managerial capacity for a permittee or licensee. 125.20(1)(e)2.2. An individual serving as an officer, director, member, manager, or agent of a corporation or limited liability company holding a permit or license. 125.20(1)(e)3.3. An individual holding more than a 10 percent ownership interest in a permittee or licensee. 125.20(1)(f)(f) “Restricted entity” means an entity holding more than a 10 percent ownership interest in a permittee or licensee. 125.20(1)(g)(g) “Restricted investor” means a restricted individual or restricted entity. 125.20(1)(h)(h) “Retail license or permit” means a Class “A,” Class “B,” “Class A,” “Class B,” or “Class C” license, a Class “B” or “Class B” permit, or a no-sale event venue permit. 125.20(1)(i)(i) “Retail licensee or permittee” means a person holding a retail license or permit and includes a restricted individual of such a person. 125.20(2)(a)(a) No production permittee may hold any interest in any distribution permittee. 125.20(2)(b)(b) No production permittee may hold any interest in any retail licensee or permittee, except as authorized under s. 125.295. 125.20(3)(a)(a) No distribution permittee may hold any interest in any retail licensee or permittee. 125.20(3)(b)(b) No distribution permittee may hold any interest in any production permittee, except as provided in s. 125.28 (2) (d). 125.20(4)(a)(a) No retail licensee or permittee may hold any interest in any distribution permittee. 125.20(4)(b)(b) No retail licensee or permittee may hold any interest in any production permittee, except as authorized under s. 125.295. 125.20(5)(5) Construction of section; authorized cross-tier activity. 125.20(5)(a)(a) For purposes of this section and s. 125.01, permittees are categorized under the 3-tier system as follows: 125.20(5)(a)1.1. A production permittee operates within the production tier. 125.20(5)(a)2.2. A distribution permittee operates within the distribution tier. 125.20(5)(a)3.3. A retail licensee or permittee operates within the retail tier. 125.20(5)(b)(b) This section does not prohibit a licensee or permittee from engaging in any activity that this chapter explicitly authorizes for the type of license or permit held or that is explicitly authorized under the terms of the license or permit. 125.20(5)(c)(c) To the extent there is a conflict between any provision of subs. (2) to (4) and any provision of ss. 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), and 125.69 (1), the provisions of ss. 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), and 125.69 (1) are controlling. Effective date noteNOTE: Par. (c) is amended eff. 1-1-26 by 2023 Wis. Act 73 to read: Effective date text(c) To the extent there is a conflict between any provision of subs. (2) to (4) and any provision of ss. 125.24 (3), 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), and 125.69 (1), the provisions of ss. 125.24 (3), 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), and 125.69 (1) are controlling.
125.20(5)(d)(d) If a license or permit may not be issued to a person under s. 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), or 125.69 (1), the person may not acquire an interest prohibited under s. 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), or 125.69 (1) after the license or permit has been issued. Effective date noteNOTE: Par. (d) is amended eff. 1-1-26 by 2023 Wis. Act 73 to read: Effective date text(d) If a license or permit may not be issued to a person under s. 125.24 (3), 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), or 125.69 (1), the person may not acquire an interest prohibited under s. 125.24 (3), 125.25 (2) (b), 125.26 (2) (b), 125.27 (7), 125.28 (2) (b), 125.29 (2) (a), 125.295 (2) (a) 6., 125.30 (3) (c), or 125.69 (1) after the license or permit has been issued.
125.20(6)(a)(a) Notwithstanding subs. (2) to (4), a licensee or permittee may be owned in part by, or grant an ownership interest to, a restricted investor in a different tier if all of the following are satisfied: 125.20(6)(a)1.1. No single restricted investor holds more than a 10 percent ownership interest in the licensee or permittee, including any passive or disregarded entity connected to the restricted investor. 125.20(6)(a)2.2. No restricted investor serves as an officer, director, manager, operator, or agent of the licensee or permittee. 125.20(6)(a)3.3. No restricted investor is involved in the day-to-day operations of the licensee or permittee or exerts any control over such operations beyond the person’s ability to vote as an owner. 125.20(6)(a)4.4. The aggregate amount of ownership held by all restricted investors in the licensee or permittee does not exceed 49 percent. 125.20(6)(a)5.5. The licensee or permittee discloses all restricted investors to the division. 125.20(6)(a)6.6. Each restricted investor executes an affidavit, on a form prescribed by the division, swearing to a complete lack of involvement in the day-to-day operations of, and lack of control over, the licensee or permittee beyond the restricted investor’s ability to vote as an owner. If the restricted investor is a restricted entity, the affidavit shall be executed on behalf of the restricted entity by an individual who is an officer or director of the restricted entity or who otherwise has management authority over the restricted entity. 125.20(6)(b)(b) A licensee or permittee, or a restricted individual of a licensee or permittee, may enter into a landlordtenant relationship with another licensee or permittee operating in a different tier if all of the following are satisfied: 125.20(6)(b)1.1. The lease or rental agreement explicitly states that the landlord has no control over or day-to-day involvement in the business of the tenant. 125.20(6)(b)2.2. No control or involvement in the business of the tenant by the landlord exists. 125.20(6)(b)3.3. The landlord and tenant maintain compliance with ss. 125.33 and 125.69, as applicable and subject to s. 125.33 (2) (hr), and this requirement is set forth in the lease or rental agreement. 125.20(6)(b)4.4. The lease or rental agreement is in writing and disclosed to the division for review. 125.20(6)(c)(c) Notwithstanding subs. (2) to (4), a spouse may have an interest in the license or permit of the other spouse if all of the following are satisfied: 125.20(6)(c)1.1. The marriage is governed by a valid marital property agreement or prenuptial agreement. 125.20(6)(c)2.2. The marital property agreement or prenuptial agreement was disclosed on any license or permit application. 125.20(6)(c)3.3. A copy of the marital property agreement or prenuptial agreement is provided to the municipal clerk or division prior to issuance of the license or permit. 125.20(6)(c)4.4. Both spouses execute an affidavit, on a form prescribed by the division, swearing to a complete lack of involvement in the day-to-day operations of, and lack of control over, each respective business. 125.20(6)(d)(d) For purposes of subs. (2) to (4), employment in a nonmanagerial capacity for a licensee or permittee is not an interest in the licensee or permittee. 125.20 HistoryHistory: 2023 a. 73. 125.21125.21 Production agreements. 125.21(1)(a)(a) “Alternating proprietorship” means an arrangement in which a host producer provides use of space and equipment, and may additionally provide personnel, to a guest producer for the production of alcohol beverages. 125.21(1)(b)(b) “Bottling” means placing alcohol beverages into sealed finished packages, including cans, bottles, boxes, bags, kegs, barrels, or any other packaging of finished products. When “bottle” is used as a verb, it has the same meaning as “bottling.” 125.21(1)(c)(c) “Contract producer” means a producer who directly manufactures, bottles, or labels alcohol beverages as an agent of a recipe producer or out-of-state recipe supplier. 125.21(1)(d)(d) “Contract production” means a contract, agreement, or business arrangement described in sub. (3) (b) whereby a recipe producer or out-of-state recipe supplier provides consideration to a contract producer for the production, bottling, or labeling of alcohol beverages. 125.21(1)(e)(e) “Guest producer” means a producer who enters into a contract, agreement, or business arrangement with a host producer whereby the producer has use of the host producer’s premises and equipment, and may have use of the host producer’s personnel, for the production of the guest producer’s alcohol beverages. 125.21(1)(f)(f) “Host producer” means a producer who enters into a contract, agreement, or business arrangement with a guest producer whereby the guest producer has use of the producer’s premises and equipment, and may have use of the producer’s personnel, for the production of the guest producer’s alcohol beverages. 125.21(1)(g)(g) “Licensing agreement” means an agreement between a licensor and a producer for the production of alcohol beverages containing the name, symbol, or mark of the licensor. 125.21(1)(h)(h) “Out-of-state recipe supplier” means a person to whom all of the following applies: 125.21(1)(h)1.1. The person is located in another state and produces alcohol beverages in that state. 125.21(1)(h)3.3. The person purchases alcohol beverages from a producer that are manufactured consistently with a recipe provided by the person or are bottled or labeled for the person. 125.21(1)(i)(i) “Producer” means a brewer holding a permit under s. 125.29, brewpub holding a permit under s. 125.295, winery holding a permit under s. 125.53, manufacturer holding a permit under s. 125.52, or rectifier holding a permit under s. 125.52. 125.21(1)(j)(j) “Recipe producer” means a producer who purchases alcohol beverages from another producer that are manufactured consistently with a recipe provided by the recipe producer or are bottled or labeled for the recipe producer.
